KARACHI:
Alleged irregularities have been exposed in development projects following revelations that the Karachi Development Authority (KDA) awarded contracts worth Rs 11.33 billion without following the mandatory tendering process. Chief Minister Murad Ali Shah has ordered an immediate high-level inquiry into the matter.
According to official sources, the Sindh Contractors Association filed a formal complaint alleging that the KDA had awarded multibillion-rupee consultancy contracts to a private firm, Atif Nazar, without advertising or competitive bidding.
Following the complaint, the Chief Minister constituted an inquiry committee to look into the alleged irregularities.
The survey will be jointly conducted by Minister for Local Government Nasir Hussain Shah and Minister for Planning and Development Jam Khan Shoro, according to the official release. The committee has been tasked to review all consultancy and development contracts awarded by the KDA, especially those exceeding Rs.11 billion, and identify any violations of procurement rules and financial regulations.
The complainants stated that several major development projects, including the Karimabad underpass and the Munawwar Chowrangi underpass, were awarded without public advertisement or tendering.
Documents reviewed by investigators show that the cost of the Karimabad Underpass project was initially pegged at Rs700 million but later escalated to Rs3.81 billion, allegedly by applying new rates to an old tender in violation of rules.
The investigation documents further reveal that continuing to work on an old tender, rather than canceling and re-advertising it, has been deemed a “serious procedural breach.”
Declaring Atif Nazar & Company as an “in-house consultant” without due process was also described as a blatant violation of procurement rules, especially since the firm was directly authorized to prepare and submit its own PC-1 (project documents).
Sources in the provincial government said that CM Shah has directed that the inquiry should be transparent and impartial, with strict action to be taken against those found responsible.
They added that the revelation has raised serious concerns about the credibility of Karachi’s ongoing development work.
“There are growing complaints that major city projects are being handed over to preferred contractors, causing cost escalations and unnecessary delays,” revealed a senior official, adding that the government is considering expanding the scope of the probe to include other ongoing schemes.
In the first phase, the probe will focus on KDA projects where contracts worth billions were allegedly awarded by circumventing procurement rules, resulting in financial losses to the exchequer.
Both Karimabad and Munawwar Chowrangi underpasses have already suffered delays and increased costs due to these alleged irregularities.
CM Shah has vowed to ensure accountability in all development authorities and affirmed that “no one found guilty of misuse of public funds will be spared.”
